According to FactSet, Amazon (AMZN)’s market value is currently USD 495 billion versus Apple (AAPL)’s USD 789 billion. Thanks to its long-term domination of the e-commerce and cloud computing markets for the years to come, Macquarie raised its 12-month Amazon price target to USD 1,130 per share – up 7.5 percent from current valuation.
“Amazon will be the most valuable company on the planet one day,” analyst Benjamin Schachter wrote in a note to Macquarie clients. In recent years, Jeff Bezos has been very active in diversifying Amazon’s activities beyond its two main pillars.
Amazon launched Amazon Business in 2015, now a B2B marketplace strong with 1 million customers and USD 1 billion in sales that directly competes with industrial supply leaders like Staples (SPLS), Grainger (GWW) and Fastenal (FAST). Amazon made another major strategic move lately with its USD 13.7 billion acquisition of Whole Foods Markets (WFM), a thundering entry into both food and supermarket sectors and thus another clear threat to Walmart (WMT) and the like.
Simultaneously, Amazon has worked at geographically diversifying its presence on consumer markets like 600-million people Southeast Asia where one may have thought it’d be too costly to defy fast-growing Chinese competitors like Alibaba (BABA) and Tencent (0700).
Part 1: 20 years after IPO, Jeff Bezos’ Amazon stronger than ever
Part 2: Jeff Bezos’ Amazon has grown in sectors and places
Part 3: Amazon’s main risk is getting too big to grow
Part 4: Are “market value, few profits” sustainable for Amazon?